Nurses get rental flats in £300m development

Mixed use: An artist's impression of the housing project at St Thomas' Hospital

This is the first image of a ground-breaking development that will provide badly needed rented accommodation for more than 400 health workers in central London.

Designed by architect Sir Terry Farrell, Founder's Place at St Thomas's Hospital is one of the biggest charity-led schemes to take place in the capital.

The promoter is the Guy's and St Thomas' Charity, which owns the site and which obtained planning permission late last year.

The charity, the fourth largest in the NHS, is inviting European property developers to tender for the £300 million project near Waterloo station.

The idea is that a developer will pay for the entire project and recoup its investment from the sale of 330 private flats.

Geoff Shepherd, the charity's chief executive, said: "This development is central to our aim of improving healthcare and research and I look forward to appointing a developer partner for the project."

Sir Terry said: "This is a tremendous opportunity to contribute to Lambeth's regeneration.

"I believe that we will enhance the environment for the wider district as this is a model mixed-use scheme, with much-needed social and private housing alongside a variety of medical and community facilities."

The development consists of eight buildings, ranging in height from five to 20 storeys. The private flats will be in four buildings, including a tower.

Profits from the land sale and the private flats will finance:

A total of 231 flats for rent to up to 407 key hospital workers.

A primary care-focused health facility.

A hotel for patients who require treatment such as chemotherapy but who do not need to stay in a hospital bed

A 102-space nursery for the children of health workers.

A 23-bed house for the families of sick children (known as Ronald McDonald House).

Ground-floor retail and café space.

Underground parking for residents.

The charity has named the development Founder's Place in recognition of Edward VI, who founded and funded St Thomas' Hospital in 1553.

The scheme is designed so that the building heights become gradually lower towards Archbishop's Park and Lambeth Palace.

The park will be improved, surrounding areas restored and access between the development and Waterloo and Lower Marsh upgraded. Demolition of the existing buildings will commence early next year and the development will be completed in stages until 2013.